State incorporations up 15 percent in 2005
Appeal Staff Writer
More than 82,000 companies incorporated in Nevada last year, which is a 15 percent increase from 2004 and keeps the state in the top 10 nationwide for incorporations, a deputy secretary said Wednesday.
“Nevada is a popular filing destination because of business-friendly statutes,” said Scott Anderson, deputy secretary for commercial recordings. “The secretary of state has put emphasis on a high level of customer service. An active resident agent industry promotes the benefits of organizing in Nevada.”
Businesses file as corporations, limited liability companies, limited partnerships, limited liability partnerships or business trusts with the Nevada Secretary of State’s office. It is a non-regulatory agency.
It doesn’t take much to incorporate in Nevada.
A business owner, who must be over age 18, can download the articles of incorporation application from the Secretary of State’s Web site. The form only requires basic information, such as officer names, addresses and amount of capitalization. A resident agent is hired by the company to oversee this process.
Business owners then pay the incorporation fee, which starts at $75. They have 30-60 days to turn in an initial list of officers. The corporation has an annual fee, which is based on capitalization.
Out-of-state and foreign business entities have long used resident agents to establish themselves in the Silver State’s less-burdensome tax climate. A resident agent is only meant to be a point of legal contact between the state and the corporation.
“We have been ranked in the top 10 for filings,” Anderson said “We fluctuate between being No. 8 or 10.”
The office has a policy of turning around incorporation documents within 10 days of receipt. Anderson said they do even better, with an average four-day turn around time.
Resident agent Jed Block, president of State Agent & Transfer Syndicate Inc., said Nevada attracts the mom-and-pop corporations, while Delaware attracts the Fortune 500 companies. Delaware often tops the nation for incorporations because of its tax laws.
“Delaware protects every single stock holder of a corporation formed in the state,” he said. “Nevada only protects the officers. We have no requirements for stating who your stock holders are.”
He said in Nevada, one person can be all of the company’s officers, which is attractive to smaller businesses.
— Contact reporter Becky Bosshart at firstname.lastname@example.org or 881-1212.
By the numbers
Incorporations filed in Nevada
2003: 56,786 total
2004: 71,136 total
An increase of 25 percent
2005: 82,241 total
An increase of 15 percent
Source: Secretary of State